Tetratherix (ASX:L) said it has received firm commitments from new and existing institutional investors to raise AU$15 million through a placement at AU$6 per share, representing a 2% discount to the 10-day volume-weighted average price of AU$6.12, according to a Thursday Australian bourse filing.

The company said tranche 1 shares are anticipated to settle on June 3, while tranche 2 shares issued to directors are subject to shareholder approval at a general meeting.

The company will also offer a share purchase plan (SPP) to existing eligible shareholders to raise a further AU$2 million, with proceeds from the placement and SPP to be used to fund production expansion, strategic partnerships, customer success, digitalization, working capital, and transaction costs.

The company's shares tumbled 6% in recent Thursday trade.